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The state revoked the lodging license for all but five of the motel's 128 rooms, finding they were being used for long-term stays. A follow-up inspection by the city found code violations including a cockroach infestation and improperly registered rooms.
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While some new immigrants are able to get on their feet fairly quickly, others can face headwinds based on language barriers and access to training opportunities.
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Part of the money will help support asylum seekers, which is likely to encounter opposition from Republican lawmakers.
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GOP lawmakers are increasingly critical of the tens of millions spent to house asylum seekers but have yet to offer concrete alternative solutions.
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Immigration officials said only Congress has the authority to adjust the statute.
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Earlier this year, several groups scrambled to set up a transitional housing program in the Frances Warde house as the city grappled with a growing crisis for pregnant and new mother asylum seekers.
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City staff said the goal is to provide services tailored to new immigrants, and free up space at the Homeless Services Center.
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The 180-bed shelter in the Riverton neighborhood is expected to free up space at the city's Homeless Services Center.
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While precise data is hard to come by, immigration court filings suggest the number of asylum seekers arriving in the state has increased roughly tenfold since 2018.
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#WeOutside launched this summer with weekly canoeing, hiking, and swimming trips, and will continue into the fall and winter.